KLA-Tencor profit drops 35% in first quarter

BenjaminPimentel

KLA
KLAC, -1.24%
reported net income of $88 million on revenue of $693 million for the quarter ended Sept. 30. compared to profit of $136 million on revenue of $629 million for the same period last year.

The chip equipment maker's results included $91 million in charges for special items, including stock based compensation. On a GAAP basis, KLA reported earnings per share of 46 cents, compared to 67 cents in the year-ago quarter. Analysts had expected the company to report earnings per share of 77 cents on revenue of $682 million.

CEO Rick Wallace said "general end market weakness" led to "timing delays" for some orders from certain logic and DRAM customers during the last weeks of September. The company also failed to reach final terms with a few customers.

"As a result these orders did not close in September and will be shifting in December," he said in a call with analysts.

He also noted weaker demand in some of the company's markets, adding, "This softening in demand will likely result in some orders expected to book during September and December moving into calendar 2008."

The company said it expects revenues of between $625 million and $640 million and earning per share of 68 cents to 73 cents.

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